Gold Rises Amid Dollar Weakness (Update 1)

Updated from 10:13 a.m. EDT with settlement prices

NEW YORK (TheStreet) -- Gold prices enjoyed a modest advance Monday, helped higher as the U.S. dollar retreated slightly against the euro.

Gold for December delivery gained $6.90 to settle at $1,616.20 at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,618.40 and as low as $1,605.30 an ounce, while the spot price was rising $9.60, according to Kitco's gold index.

"The market is kind of stuck in a wait and see pattern, we don't really have any economic data coming out for the next few days, so I mean gold prices are just range bound," said Phil Streible, senior commodities broker at RJO Futures. "They're probably going to look and see if the euro currency continues as the dollar weakens."

Silver prices for September delivery dipped 6 cents to $27.86 an ounce, while the U.S. dollar index was falling 0.06% at $82.26.

After getting mixed signals last week on the potential for additional stimulus from the world's central banks, gold traders may have to wait until late August or September before another meaningful event offers a substantive catalyst for the precious metal.

The Fed doesn't hold its next policy meeting until September, and many gold investors have said August looks set up to be a slow action, low volume month as many investors in the United States and Europe head for summer vacations.

Gold mining stocks were mostly higher Monday. Shares of Agnico-Eagle Mines (AEM) were climbing $3.6%, while Newmont Mining (NEM) was up 4%.

Among other mining stocks, Barrick Gold (ABX), Randgold Resources (GOLD) and Yamana Gold (AUY) were all up more than 2%

-- Written by Joe Deaux in New York.

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